{"id":640,"date":"2017-01-24T11:39:26","date_gmt":"2017-01-24T17:39:26","guid":{"rendered":"http:\/\/www.mankatobankruptcy.com\/blog\/?p=640"},"modified":"2017-01-24T11:39:26","modified_gmt":"2017-01-24T17:39:26","slug":"chapter-7-bankruptcy-new-ulm-mn","status":"publish","type":"post","link":"https:\/\/www.mankatobankruptcy.com\/blog\/chapter-7-bankruptcy-new-ulm-mn\/","title":{"rendered":"How to Know if You Quality for Chapter 7 Bankruptcy in New Ulm, MN"},"content":{"rendered":"

If you’re struggling with debt, filing for bankruptcy might be a great option to help you get back on your feet and recover financially. For most individuals\u2014and even for some small businesses\u2014filing for Chapter 7 bankruptcy is the most attractive option for alleviating debt and rebuilding credit. Not everyone, however, will qualify for Chapter 7, irrespective of how overwhelming the debts may be. Behm Law Group, Ltd\u2019s bankruptcy attorneys can help you throughout the bankruptcy process and determine whether you qualify for Chapter 7 bankruptcy<\/a> in New Ulm<\/a>, MN.<\/p>\n

Chapter 7, or liquidation bankruptcy, is a type of bankruptcy that is designed to discharge all your qualifying debts and liquidate your non-exempt assets to pay some dividend your creditors. \u00a0The bankruptcy code provides very generous bankruptcy exemptions which allow you to retain your property.\u00a0 In most cases, the bankruptcy exemptions will be sufficient to allow you to retain all of your property.\u00a0 Sometimes, the value of the property you own may exceed your allowable bankruptcy exemptions in which case the bankruptcy trustee administering your case would be required to liquidate or sell the non-exempt assets and divide the proceeds among your creditors.\u00a0 In order to file for chapter 7 bankruptcy relief, you must first qualify by passing the Minnesota Means Test.<\/p>\n

Means Test<\/strong><\/p>\n

The Means Test is an evaluation of your disposable income. By comparing your average monthly income during the six-months prior to the month in which you file for bankruptcy with the median income or state average income for a household of your size, the courts will decide whether your income is low enough for you to qualify for Chapter 7. To put it simply, if your income is lower than the state median or state average income for a household of your size, you qualify for Chapter 7. If your income is equal to or higher than the state median or state average income for a household of your size, you still must complete the Means Test in full, and the courts will decide if you qualify based on the balancing of your expenses and income.<\/p>\n

Even if you qualify for Chapter 7 bankruptcy after taking the Means Test<\/a>, there are some other aspects of liquidation bankruptcy to consider:<\/p>\n